Jay's Pharmacy owes the same creditor two debts of $6,000 due one year ago and $7,500 due in two years. Jay has proposed making two alternative payments of $10,000 due in three months and a final payment in 2½ years. If the creditor is agreeable to this proposal and wants an interest rate of 9 % compounded quarterly, what is the amount of the final payment.
Jay's Pharmacy owes the same creditor two debts of $6,000 due one year ago and $7,500 due in two years. Jay has proposed making two alternative payments of $10,000 due in three months and a final payment in 2½ years. If the creditor is agreeable to this proposal and wants an interest rate of 9 % compounded quarterly, what is the amount of the final payment.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Jay's Pharmacy owes the same creditor two
debts of $6,000 due one year ago and $7,500
due in two years. Jay has proposed making
two alternative payments of $10,000 due in
three months and a final payment in 2½
years. If the creditor is agreeable to this
proposal and wants an interest rate of 9 %
compounded quarterly, what is the amount of
the final payment.
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